By Heather Bell, President/CEO - Orange County Chamber of Commerce

As Albany deliberates solutions to address the Metropolitan Transportation Authority’s (MTA) $33 billion capital funding gap, discussions have once again turned toward increasing the financial obligations of businesses—including those in Orange County. However, this approach raises concerns, as our local businesses already contribute significantly to the MTA despite receiving little direct benefit.

Since the introduction of the Metropolitan Commuter Transportation Mobility Tax (MCTMT) in 2009, Orange County employers have paid into the system, yet transit service west of the Hudson remains largely unchanged. The MCTMT, a payroll tax applied to businesses with annual payrolls exceeding $1.25 million, generated approximately $25 million from Orange County businesses last year alone. Despite this investment, the region's rail infrastructure remains limited.

MTA CEO Janno Lieber, as reported by the Times Union on February 7, 2025, acknowledged these service gaps, stating that he was “extremely sympathetic” to the lack of service west of the Hudson, which affects commuters in Orange and Rockland counties. However, despite this recognition, west-of-Hudson service was not included in the latest MTA Capital Plan. While discussions continue about potential long-term solutions, the reality remains: Orange County businesses are paying into a system that does not provide them with proportional service.

As economic uncertainty persists, it is critical to consider the impact of additional financial burdens on employers. Increased taxation could force difficult business decisions, potentially leading to staff reductions or even business closures. Rather than increasing taxes on businesses that receive minimal benefits from MTA services, policymakers should explore alternative funding mechanisms that more equitably distribute the cost of transit improvements.

We urge the Governor and the Legislature to reconsider any tax increases on Orange County businesses and identify solutions that ensure both transit sustainability and economic stability. A more balanced approach is necessary to get the MTA back on track without placing undue strain on local employers.